Maintenance > Funds

As part of the Funds module Investment funds can be created and maintained through menu Maintenance> Funds.

The properties of funds are divided over three tabpages:

•General

•Company

•Bank

•Documents

A fund can be deleted as long as there are no participants present.

Tab page General

- Fund code

The Fund code must be unique.

- Description

This field is optional.

- Start date

The Start date of the fund is used to calculate the management fee in the capital call and the hurdle amount in the distribution notice.
This date cannot be altered when participants are present for the fund.

- End date

The purpose of this field is purely informational.

- Initial call threshold

This is the minimum amount to be called at the first call after a participant enters the fund.

When the amount is higher than what is actually requested the remaining amount will be placed in deposit for the next call.

This field cannot be altered when participants are present for the fund.

- Currency

The currency applies to all amounts mentioned for the fund.

The currency cannot be altered when participants are present for the fund.

- Web portal

This is the portal that will host the fund.
Portals are created and maintained at Maintenance>Funds>Portal.

- Bookkeeping

The bookkeeping in which the accounting is done for the fund.
The Funds manager of the fund can only be accessed in this bookkeeping.

- Fund mailing report

A report template can be used in mailings to create a default attachment file filled with data from the funds database.

The template is custom made. Please contact the Millogic helpdesk for more information.

Template files must be saved in the Mill7\Reports\Custom folder.

- Create a seperate capital call for new participants

By default when new participants enter a fund after the first call is made, they will be included in the next capital call.

This can result in a shift of capital to the deposit of the participants already included in previous calls ( active participants).

All costs of previous calls will be re-distributed over old and new participants.

By checking this option, new participants will not create a shift of capital to the deposit of the participants already included in previous calls.

When a new call is created and new participants are detected, it will not be possible to enter an amount for the call. Only new participants will participate in the call.

The amount called for each new participant will be calculated based on the current call / commitment percentage of participants already called.

This setting cannot be changed once capital calls are present for the fund.

- Fee and hurdle calculation

This field cannot be altered when capital calls are present for the fund.

The Management fee and the hurdle amount are calculated with a percentage per year over a specific period.

There are 4 calculation methods available to calculate the number of days in a period: 365/365, 360/360, 365/360 and 360/365.

The first number in the method notation.

The first number in the method is used for the calculation of the number of days between start date and end date.

365 means that the actual number of days is used.

360 means that the calculation is based on 30 days in a month.

The second number in the method notation

The second number indicates the number of days in a calender year.

365 means that the actual number of days in a year is used, 365 and in case of leap year 366.

360 means that the calculation is based on 360 days in a year.

- Management fee

The fee is expressed as a percentage per year of the total commitment of all participants.
The fee is calculated per year using the selected calculation method and will be charged via a capital call.

- Hurdle rate

The hurdle (minimum expected result) is the second step of the waterfall method.

The rate is expressed as a percentage of the total investment amount of all participants.

The hurdle amount is calculated using the the selected calculation method and paid out to the participants via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

Fixed percentage based on invested capital

By using this option the hurdle is calculated as a fixed percentage based on the invested capital and not calculated like interest on a bank amount or an outstanding loan.

- Catch-up rate

The Catch-up is the third step of the waterfall method.

The rate is expressed as a percentage of the total capital plus the total hurdle amount of all participants.

The Catch-up amount is calculated and reserved for the funds manager via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

Calculate over hurdle only

By using this option the Catch-up is expressed as a percentage of only the total hurdle amount of all participants.

This option cannot be altered when distribution notices are present for the fund.

- First split man. share

The First split is the fourth step of the waterfall method.

The total amount is calculated as following: (total capital amount * 2 - (total capital amount + total hurdle amount)).

The rate is expressed as a percentage of this total amount and reserved for the funds manager via Distribution notices.

The other percentage is paid out to the participants via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

- Second catch-up rate *

The Second catch-up rate is the fifth step of the waterfall method.

The total amount is calculated as following: (total hurdle amount + total first split participant amount - (total catch-up amount + total first split manager amount)).

The rate is expressed as a percentage of this total amount and reserved for the funds manager via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

- Second split man. share *

The Second split is the sixth step of the waterfall method.

The total amount is calculated as following: (total capital amount * 3 - (total capital amount + total hurdle amount + total first split participant amount)).

The rate is expressed as a percentage of this total amount and reserved for the funds manager via Distribution notices.

The other percentage is paid out to the participants via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

* A rate for first split man. share is required to be able to fill in a rate for Second catch-up rate or Second split man. share.

- Carried interest share

The Carried interest management share is the final step of the waterfall method.

The share is expressed as a percentage of the remaining amount of the total distribution amount after the first three steps of the waterfall method has been taken in account.

The share is calculated and reserved for the funds manager via Distribution notices.

This field cannot be altered when distribution notices are present for the fund.

Tab page Company

This tabpage holds the name, address and other data of the company running the fund.

Tab page Bank

This tabpage contains the details of the bank account used for the fund.

Tab page Documents

All kinds of documents, like for example Ms-Word or Ms-Excel documents, Outlook messages and PDF files, can be included in Mill7.

The document itself is not saved in Mill7. Only a link to the location of the document will be saved.